Let the production function be q=ALaKb. The function exhibits ...

[erika]

Let the production function be q=ALaKb. The function exhibits decreasing returns to scale if
 
  A) a + b = 1.
  B) a+ b > 1.
  C) a + b < 1.
  D) Cannot be determined with the information given.

Question 2

Which of the following collective consumption goods does not become a private consumption good at some level of use?
 
  a. highway
  b. swimming pool
  c. national defense
   d. television

[nixon_s]

Answer to Question 1

C

Answer to Question 2

c

[erika]

Thanks for the timely response, appreciate it

[chereeb]

Gracias!